The issuance of these hybrid securities will complete Origin's financing associated with the acquisition of Karoon Gas’s 40% interest in two offshore exploration permits (WA- 315-P and WA-398-P) in Western Australia’s Browse Basin.
Origin Executive Director, Finance and Strategy, Ms Karen Moses stated:
Historically, Origin has enjoyed a strong level of support from investors across debt, hybrid and equity markets. This is demonstrated by the successful issue of €800 million and US$800 million senior unsecured notes in October 2013, together with the successful pricing of this €1 billion hybrid.
The hybrid is Euro-denominated and has been hedged into Australian dollars, is subordinated, matures after 60 years and can be redeemed by Origin at years 5 and 10 or on any interest payment date thereafter. The hybrid pays fixed semi-annual interest at a rate of 4% annum for the first 5 years and thereafter at reset rates in accordance with the terms and conditions
The settlement of the offering is expected to occur in mid-September 2014 and is subject to customary conditions.